What type of life insurance policy offers death benefits and also accumulates cash value that can be borrowed against?

Whole life insurance is a type of life insurance policy that provides both a death benefit and a cash value component. This cash value accumulates over time, as part of the premium payments goes toward building this savings-like feature, which grows on a tax-deferred basis.

The cash value can be borrowed against, giving the policyholder access to funds if needed while keeping the life insurance coverage in force. This makes whole life policy appealing for those looking for lifelong coverage and also a savings component.

In contrast, term life insurance provides coverage for a specific term and does not accumulate cash value. Accidental death policies typically only pay benefits in the event of death due to an accident and do not include any cash value. Variable life insurance does have a cash value component, but its cash value and death benefit can fluctuate based on investment performance, which is different from the stable growth associated with whole life policies.